Market Boom - Big revenue rise for LSL despite conveyancing delays

A trading statement this morning confirms a large revenue rise for LSL Property Services.

Group revenue increased by around 23 per cent last year, mostly because of growth in financial services activity - now LSL's primary area of activity.

Financial adviser numbers at the start of 2022 increased by a record 273 year-on-year to 2,858 and the estate agency division increased its residential market share across its core catchment areas.

However, the company admits its agency residential pipeline conversion slowed in H2 2021, following the record market levels experienced in the lead up to the Stamp Duty holiday deadline and capacity issues in the conveyancing market.

This morning's statement says: "We retain a strong residential sales exchange pipeline at 31 December 2021, seven per cent lower than the record pipelines reported at the same date in 2020. Residential fall-throughs remain at normal levels."

Looking back at 2021 the statement continues: "We announced the sale of investments in two non-core businesses to simplify the Group structure, LMS (May 2021) and TM Group (July 2021), for a combined total of £41.3m in cash. LSL estimates the lost profit contribution for these two businesses in 2021 to be c.£1m. LSL's balance sheet and strong cash generation enables further investment to deliver the Group's ambitious growth strategy, including expected investment in Pivotal Growth, established in April 2021 as a joint venture with Pollen Street Capital, to 'buy and build' a leading national mortgage broker."

LSL Property Service's full results will be published on March 16.